TRZBF - Air Canada-Transat merger called off as EU says concessions insufficient

Air Canada (ACDVF) is scrapping its planned takeover of vacation operator Transat (TRZBF), after the European Union said it offered insufficient concessions to address competition concerns."The proposed transaction would raise competition concerns on a large number of transatlantic routes," EU antitrust commissioner Margrethe Vestager says. "Based on the results of the market test, the remedies offered appeared insufficient."The airline says "providing additional, onerous remedies, which may still not secure an EC approval, would significantly compromise Air Canada's ability to compete internationally."Air Canada agreed to buy Transat in June 2019 and later raised its bid to $18/share before lowering it after the pandemic struck to $5/share in cash or 0.2862 Air Canada shares, valuing Transat at ~$200M.The Canadian government granted conditional approval of the deal in February.

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Air Canada-Transat merger called off as EU says concessions insufficient